My commercial loan area is looking to use DocuSign in their loan process. They have asked is the Consumer Disclosure is required to be provided on Commercial Loans?

No - you just need an agreement, but demonstrable consent is not required.

Since you're not dealing with consumers, your state's UETA is also an option. Regardless of the choice of laws, you should base this loan process on risk control. Start with a scenario where you are in court trying to obtain a judgement against the borrower. What evidence of a "signed" agreement will it take to prevail?

Could you please tell me where is states that demonstrable consent is not needed? I am working on updating our Esign procedures for our commercial lenders and want to make sure I can support this change if asked.

Thanks!

E-sign applies consumer disclosures. See section 7001 and section 7006 for the definitions..

Nowhere.

Before the UETAs and ESIGN, electronic documents had no legal standing. Even if you and the customer agreed to use e-documents, state and federal courts could (and probably did) ignore them. The state UETAs and ESIGN change all of that.

UETAs tell the state judges that e-documents are legal--provided the sender and recipient agree to use them. No demonstration is required--just consent. State laws govern contracts...but not federal disclosures (TIS, TIL, etc.)

ESIGN tells state and federal judges that e-documents are legal, but it imposes the additional burden of the demonstration IF the recipient is a consumer. It says nothing about other types of recipients, so e-deliveries to businesses would only require a simple agreement (more or less like EUTA.) Since ESIGN is federal law, demonstrable consent (Section 7001) makes your federal e-disclosures (TIS, TIL, etc.) the legal equivalent of paper.

I believe that I know the answer to this question, but I want to confirm.

Do the requirements change if a consumer is a borrower on the commercial or agricultural loan (the loan is not made solely to the LLC or similar entity)? I am specifically wondering if you have to demonstrate consent in this situation.

The type of loan isn't relevant. All that matters is whether federal law requires you do deliver one or more documents in writing to consumers who are participants in the transaction. To determine who is a "consumer", you look at the law/reg that requires the written document.

1. What documents do federal laws/regs require you to deliver in one of the loans in question?
2. How does that law define who is or is not a "consumer"?

It's important to note that you are free to impose higher than the minimum legal standards when you and the customer agree to use tree-free "written" documents. In addition to cases where you are delivering documents containing legally-mandated disclosures, you could maintain a policy that a demonstration is a sound business practice (just like requiring signed receipts for everything) and is required for all types of customers in all types of transactions.